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Question 16 of 42
Q.

Asha and Nisha are partners sharing profits and losses in equal ratio. From the following Trial Balance and adjustments you are required to prepare Final Accounts:

Trial Balance as on 31st March, 2019
Debit BalanceAmount (₹)Credit BalanceAmount (₹)
Purchases48,000Capital accounts:
Salaries7,500Asha80,000
Wages2,800Nisha40,000
Advertisement (2 years)4,000Bank Overdraft34,000
Sales Return8,000Sales1,48,000
Motor Van63,000R.D.D.1,200
Stock (1. 4. 2018)94,500Purchase Return6,000
Sundry Debtors62,800
Coal, Gas and Fuel1,000
Plant and Machinery17,600
3,09,2003,09,200
Adjustments:
Closing stock is valued at cost ₹ 88,000 and market price ₹ 90,000.
Asha and Nisha withdrew goods from business ₹ 3,000 and ₹ 2,000 respectively for their personal use.
Depreciate Motor Van by 5% and Plant and Machinery by 7%.
Reserve for Doubtful debts on Debtors at 5% is to be created.
Outstanding Wages ₹ 800.
Maharashtra MsbshseMaharashtra HSC (MSBSHSE) Board 2022Subjective· 12mImportance★★★★★
38% · 16/42 Questions
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Closing stock is valued at cost ₹ 88,000 (lower of cost and market). Goods withdrawn ₹ 5,000 reduce purchases and become drawings. Depreciation: Motor Van 5% = ₹ 3,150, Plant & Machinery 7% = ₹ 1,232. New R.D.D. at 5% on ₹ 62,800 = ₹ 3,140 (less old ₹ 1,200 → ₹ 1,940 to P&L). Advertisement ₹ 4,000 is for 2 years → ₹ 2,000 this year, ₹ 2,000 prepaid. Outstanding wages ₹ 800 added. Result: Gross Profit ₹ 91,900, Net Profit ₹ 76,078 split equally, and a Balance Sheet tying at ₹ 2,25,878.

Trading Account for the year ended 31st March 2019

Dr. ParticularsAmount ₹Cr. ParticularsAmount ₹
To Opening Stock94,500By Sales 1,48,000 − Return 8,0001,40,000
To Purchases 48,000 − Return 6,000 − Goods withdrawn 5,00037,000By Closing Stock (at cost)88,000
To Wages 2,800 + Outstanding 8003,600
To Coal, Gas and Fuel1,000
To Gross Profit c/d91,900
Total2,28,000Total2,28,000

Profit & Loss Account for the year ended 31st March 2019

Dr. ParticularsAmount ₹Cr. ParticularsAmount ₹
To Salaries7,500By Gross Profit b/d91,900
To Advertisement (1 year of 2)2,000
To Depreciation on Motor Van (5%)3,150
To Depreciation on Plant & Machinery (7%)1,232
To R.D.D. (new 3,140 − old 1,200)1,940
To Net Profit c/d (Asha 38,039 + Nisha 38,039)76,078
Total91,900Total91,900

Balance Sheet as on 31st March 2019

| Liabilities | Amount ₹ | Assets | Amount ₹ |

| --- | --- | --- | --- | …

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